Debt Consolidation

Debt consolidation offers to combine all of your existing balances into a single, more affordable monthly repayment – allowing you more financial freedom in your everyday life!

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Consolidation Loans for your Debt – High-risk clients welcome

When you have multiple loans and credit agreements it can become very difficult to manage not only in terms of repayments but also in terms of affordability.

A debt consolidation loan will ensure you’re able to properly manage and afford your debts.

Frequently Asked Questions

Are struggling to manage and repay your Debt?

A debt consolidation loan can help you take control of your debts and finances quickly and easily – you need to adopt an effective debt solution as soon as possible.

What is Debt consolidation?

It involves combining all outstanding balances on personal loans and credit cards into one account. In this way, you will be able to make a single smaller monthly payment, save money and lower your risk of defaulting.

The debt consolidation strategy is to get a lower interest rate on a consolidation loan than you would be paying on interest across all your smaller loans.

Consolidate your debt using Credit cards

One of the major benefits of debt consolidation is that it is flexible. It can be done in different ways so as to suit the needs of borrowers precisely. One of the simplest techniques involves the use of a low-interest rate credit card. You can transfer all of your outstanding debt to this card so that you can automatically eliminate the interest payments. You will achieve the highest possible savings by repaying your debt in full before the low rate interest period expires.

Using a Home equity loan to consolidate your Debt

Another popular and effective strategy involves the use of a home equity loan for debt consolidation. You can transfer the balances on all of your current personal loans and lines of credit to your home loan balance or to a new home equity loan. That way, you will pay a much lower interest which is typical for a secured personal loan. You will have smaller monthly payments and save money. The only drawback is that if you default on the secured loan, your house may be repossessed.

Is a consolidation loan the right option for me?

If you're experiencing serious difficulties repaying your debt and are accumulating more debt, you should turn to a specialist immediately. A debt counsellor or a specialised financial advisor will be able to provide the professional assistance which you require. The specialist will determine your current financial position and prepare an effective strategy for you to get out of debt.

How do I apply for a Debt consolidation loan?

You should make your loan application for debt consolidation right away after finding the right type of product for you. You will still have to undergo a credit check to ensure that you qualify. The lender will look into your income and monthly expenses to confirm that you will have a sufficient amount of money left for the repayment of the loan. You should be absolutely certain about the loan which you are applying for as making more than one application can cause considerable damage to your credit score.

If you're already blacklisted you will need to seek information on obtaining a bad credit loan.

Do I qualify for a Debt consolidation loan?

You will have the best chances of approval for debt consolidation if the income you have left after covering your monthly expenses exceeds the monthly instalment on the loan. That way, the risk to the lender is much lower. Similarly, your credit history must be acceptable. People with bad credit or those that are blacklisted have a lower chance of getting approved. At the same time, most lenders are willing to approve applicants with a few blemishes on their credit record as long as they have been diligent borrowers otherwise.

If you have one or two late payments, for instance, you can expect to qualify for a consolidation loan but may have to offer some form of collateral to secure the loan. This is even more so for those who have a large sum of debt in the form of short-term loans and outstanding credit card balances.

Avoid these Debt consolidation mistakes

All consolidation loans come with closing costs, which you will have to pay out of your pocket. Usually, they are calculated as a percentage of the total loan amount. It is a mistake not to plan for the payment of these costs. It is best if you prepare the money in advance or notify the lender that these costs must be included in the loan amount if you have no other choice.

Does a Consolidation loan suit your requirements?

It is a mistake to accept loan terms that do not actually suit your financial circumstances, needs and goals. There is no point in consolidating your debt just to keep struggling to make that larger monthly payment. The best strategy to adopt is to negotiate the terms of the loan so that it suits you. Most lenders are more open to negotiation than you think, especially when the demand for their credit products is fairly low. You can readily bargain for a lower interest rate, smaller monthly payments and a more flexible repayment structure.

Get professional help with your existing Debt

Before you apply for a debt consolidation loan, you must determine how much you owe currently, how much you will need to borrow and how you will repay the new loan. This is very difficult with someone who is not versed in finance and the risk of making a mistake is high. This is why you will benefit greatly from using debt review.

Find a local Debt counsellor

The specialist will recommend the most effective method for debt consolidation in your case and will help you devise a precise plan for the repayment of the new loan so that you do not have to struggle with your finances.

The debt counsellor or financial planner will assist you in finding the most affordable debt consolidation loan and make sure that the repayments are tailored to your budget. This ensures that you will be able to get out of debt without excessive struggle.


List of direct lenders offering Debt consolidation

  1. DebtBusters Consolidation loan

    DebtBusters

    • Protection against creditors
    • Save on interest & fees
    • Protect your assets
  2. Letsatsi Finance Consolidation loan

    Letsatsi Financ...

    • Loans up to R100,000
    • Term up to 36 months
    • Approval in 1 hour
  3. Negociate Consolidation loan

    Negociate

    • Your Money - Better Terms
    • Term up to 84 months
    • Increased cash flow
  4. Debt Rescue Consolidation loan

    Debt Rescue

    • Free Debt Assessment
    • Get a Rescue Plan
    • ONE Affordable Payment
  5. Nedbank Consolidation loan

    Nedbank

    • Loans up to R300,000
    • Term up to 72 months
    • Interest from 10.25%
  6. National Debt Advisors Consolidation loan

    National Debt A...

    • FREE debt assessment
    • Debt relief options
    • Become financially free
  7. FNB Consolidation loan

    FNB

    • Loans up to R300,000
    • Term up to 60 months
    • Interest from 10.25%
  8. African Bank Consolidation loan

    African Bank

    • Loans up to R250,000
    • Term up to 72 months
    • Interest from 15%
  9. Capitec Consolidation loan

    Capitec

    • Credit relief
    • Lower repayments
    • Reliable debt assistance
  10. New Debt Plan Consolidation loan

    New Debt Plan

    • Easy online application
    • Manage your debt
  11. Absa Consolidation loan

    Absa

    • Rebuild your credit
    • Get debt relief
    • Lower interest rates
  12. Logical Debt Solutions Consolidation loan

    Logical Debt So...

    • Live a debt-free life
    • Reduce your debts into
    • One affordable payment
  13. JustMoney Consolidation loan

    JustMoney

    • Repair your credit score
    • Get out of debt
    • Credit life insurance
  14. Debt Map Consolidation loan

    Debt Map

    • Loans up to R100,000
    • Term up to 60 months
    • Lower interest rates
  15. Blue Oak Systems Consolidation loan

    Blue Oak System...

    • RESET your debt
    • Online financial services
    • Easy online applications
  16. Zero Debt Consolidation loan

    Zero Debt

    • Become debt free
    • Term up to 60 months
    • Reduced interest rates
  17. One Debt Consolidation loan

    One Debt

    • Debt Consolidation Solutions
    • Get debt RELIEF
    • Save on interest
  18. Debt Eraser Consolidation loan

    Debt Eraser

    • Free debt assessments
    • Instant debt relief
    • Reduced fees
  19. Debt Therapy Consolidation loan

    Debt Therapy

    • Easily reduce repayments
    • Expert financial advice
    • FREE consultations
  20. Debt.co.za Consolidation loan

    Debt.co.za

    • Term up to 60 months
    • Consolidate existing debt
    • Interest from 20%
  21. Pay Plan Solutions Consolidation loan

    Pay Plan Soluti...

    • Business Rescue
    • Complete financial wellness
    • Expert advice
  22. BondPro Consolidation loan

    BondPro

    • The BOND experts
    • Professional Services
    • Reliable debt consolidation
  23. EC Finance Consolidation loan

    EC Finance

    • Loans up to R120,000
    • FLEXIBLE Repayment Options
    • 90% approval rate
  24. Getabond Consolidation loan

    Getabond

    • Get expert advice
    • Free online applications
    • Apply TODAY
  25. Bond Busters Consolidation loan

    Bond Busters

    • EFFECTIVE Debt Solutions
    • Become Debt Free
    • Remortgaging
  26. Pow Wow Loans Consolidation loan

    Pow Wow Loans

    • BREAK the debt cycle
    • Protect your assets
    • Reduced payment
  27. DebtConsolidation-SA.co.za Consolidation loan

    DebtConsolidati...

    • Lower interest rates
    • Simple payment plans
    • Get rid of DEBT
  28. SA Home Loans Consolidation loan

    SA Home Loans

    • Affordability assessment
    • Term up to 30 years
    • Interest from 7.25%
  29. My Financial Help Consolidation loan

    My Financial He...

    • Unsecured Loans
    • Term up to 5 years
    • Interest from 28%
  30. No More Debt Consolidation loan
  31. Find-A-Loan-SA Consolidation loan